Abstract:

On September 22, 2016, China’s Ministry of Industry and Information Technology (MIIT) proposed a Temporary Management Regulation for Corporate Average Fuel Consumption (CAFC) and New-Energy Vehicle (NEV) Credits for public comment. This proposal was rolled out in the context of the Chinese central government’s decision to phase out its decade-long subsidy program for NEVs in 2021. The proposal essentially would add a new NEV credit program to the existing corporate average fuel consumption regulation for passenger cars overseen by MIIT. The following summary provides an overview of the key elements of the proposal.